FSCO releases updated guidelines for submitting auto rate changes

The Financial Services Commission of Ontario (FSCO) has released updated filing guidelines for submitting changes to automobile insurance rates and risk classification systems.One change is that insurers will be required to use the major filing guidelines in situations in which a rate change of 10% or more is proposed and the insurer has not submitted a filing for the category in the last three years.”This is a new requirement and consistent with FSCO’s view that insurers should regularly review the adequacy of rates for all categories of automobile insurance, so that consumers are less likely to experience large rate changes,” FSCO noted in a bulletin posted on its Web site. “Also, risk profiles included in these filing guidelines have changed and FSCO may require you to complete and submit the revised profiles.”To assist insurers, FSCO has included a ARate Filing Checklist for Major Filings within the Technical Notes that insurers can use at their discretion.The complete Technical Notes summarizing the updated filing guidelines can be found at: http://www.fsco.gov.on.ca/english/pubs/bulletins/autobulletins/2006/a-10_06.aspFSCO further noted in its posting that it would be encouraging insurers to file electronically in the future.”One of FSCO’s key priorities for 2006-07 is to ‘improve delivery of service’ across the regulated sectors,” FSCO posted on its Web site. “One of the initiatives under that priority is to conduct additional training for auto insurers on the use of the ARCTICS system to facilitate the submission of more auto insurance filings by electronic means.”FSCO’s web-based ARCTICS system is in full operation. Insurance companies with the proper authority and password can use the system.”